- Onetime Foreclosure King Facing Multiple Suits Now Turns to New Venture: Five Guys Burgers and Fries
Onetime Foreclosure King Facing Multiple Suits Now Turns to New Venture: Five Guys Burgers and Fries
Posted Jan 27, 2012 3:45 PM CST
By Martha Neil
At the top of his game as Florida's unchallenged foreclosure king, David J. Stern had perhaps 100,000 cases and a back-office legal processing support operation that he sold for $60 million in 2010.
Then came allegations of slipshod work and the firm's sudden collapse last year, after Fannie Mae pulled its files. Judges reportedly were left to deal with abandoned cases because the firm lacked the staff or funds to move to withdraw, and now-former employees sued for termination pay.
Earlier this month, the purchasers who paid Stern $60 million for DJSP Enterprises sued him as well as an accountant and auditor involved in the transaction in state court in Broward County, seeking damages from Stern for alleged fraudulent inducement.
The plaintiffs contend Stern made money by utilizing improper corner-cutting practices, such as so-called robo-signing of documents, and submitted false documents to courts, according to Reuters.
However, Stern's lawyer, Jeffrey Tew, told the news agency his client did nothing wrong and intends to defend the suit.
Now Stern is investing in a new venture: Five Guys Burgers and Fries, the Palm Beach Post's Real Time blog reports.
However, he retains his law license, and a state investigation under Florida's Unfair Trade Practices Act has stalled following a 4th District Court of Appeal ruling that the state doesn't have jurisdiction to investigate. Florida is now appealing that ruling to the state supreme court.
Hat tip: South Florida Business Journal.
ABAJournal.com: "Law Firm of Fla. ‘Foreclosure King’ to Close; It and Affiliated Company Once Had 1,200 Workers"
ABAJournal.com: "As Chief Judges Agree Law Firm Can’t Simply Quit, One Sets Hearings for 9,000 Abandoned Cases"
Housing Predictor: "Attorney General Moves to Recover Homeowner Damages"